The spike in the last quarter was driven by a rise in the number of IVAs, which accounted for 77% of total insolvencies during Q4. The Insolvency Service said that IVAs accounted for 70% of all personal insolvencies during 2020.
There were 111,424 personal insolvencies in total for the whole of 2020, a decrease of 8.6% on 2019. According to the data, this decrease was driven by a 25% reduction of both bankruptcies and DROs. The total number of bankruptcies in 2020 was the lowest since 1990.
Colin Haig, president of insolvency and restructuring trade body, R3, said: The increase in personal insolvencies between Q3 and Q4 of last year may indica…
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